Freehold Royalties Ltd (FRU.TO) Buy, Sell or…

Freehold Royalties Ltd (FRU.TO)

16.44

-0.00 (0.00%)

as of Jun 19, 2026, 8:00:00 pm Market Open.

262 watching

WAIT

It was a past pick. He trimmed half his position today to buy Enerplus and another company. The CEO and board are quite timid when they should be more aggressive. They cut the dividends by 71%. There is no exploratory risk and is one of the more defendable business. A new CEO must be more aggressive.

TOP PICK

They own land and people pay them to drill on it. The stock has fallen just as much as other names in the energy sector. There was a change in CEO who may be able to communicate better than the last one. Trading at a massive discount. (Analysts’ price target is $6.17)

TOP PICK

A new name for them. It has sold off along with the other oil and gas companies, despite lower risk levels. They cut their dividend by 71%. They can triple dividend and still have free cashflow to grow production. (Analysts’ price target is $6.04)

HOLD

He does thinks the dividend is at risk (40-60% cut). FRU-T cut their dividend in 2014 and did raise it back up as conditions improved and he expects FRU-T to do it again now. The best capitalized companies will thrive. He expects them to survive this downturn. He is looking to average down and get his weighting back up.

BUY

Hold or buy a pipeline? He owns this one for his clients. They may decrease drilling, but when other companies reduce drilling they are forced to sell off royalty interests -- this is good for them. They are slow and steady. CN's pension plan owns this as well in a big way. It appears to be on sale to him. He thinks their cash flow will improve when oil returns to above $50 by June.

TOP PICK

An example of understanding the value of the company. They have zero cost of production, so if oil goes to $10, they still make money. Free cashflow machine. Payout ratio is under 100% all the way down to the high 30s. Expects a $10-12 stock with oil above $50 a year from now. Yield is 10.48%. (Analysts’ price target is $10.46)

COMMENT

He bought it too early. The dividend is not sustainable if the price of oil remains at $45 per barrel, but even if they cut it in half, it would still be a good dividend. He owns it because he feels Canadian oil is undervalued and this is due to our politics. The sooner that politicians realize that Canadian runs on oil--and Quebec enjoys massive transfer payments because of oil--then the sooner oil companies will like this will do well.

COMMENT

He doesn't own much oil--too uncertainty. But royalty companies have some advantages and FRU is a good company. If you expect a rebound in energy stocks (he doubts it), FRU isn't a bad way to play. The dividend is relatively secure.

HOLD

A much lower beta play on an oil price recovery. They need $55 oil prices to sustain their cash flows. He likes their low cost assets. Yield 7.5%

TOP PICK

He can't figure out why these types of royalty companies are going out of favour. This type of environment is a good for royalty companies. The dividend is 8.41%. This is an oil and gas name that is safe to own this year. He thinks they will increase the dividend this year. (Analysts’ price target is $10.37)

PAST TOP PICK

(A Top Pick Aug 26/19, Down 0.3%) Has added to his position. A free cashflow machine. Great balance sheet. When the energy sector turns, this stock will take off. Free cashflow yield is 13-14%. A lot of upside. Yield is 9%.

BUY

It is a great time to be in a royalty company. This is one of the 4 oil and gas holdings he has. This company is pretty sleepy. They recently have been taking on debt, which they don't usually do. They are finding small deals to do because producers are struggling. He likes it and thinks it is well run.

COMMENT

Every time it comes back up it gets beaten down. We are right at the 2009 levels. You have a place to hang your hat here. If it is breaking down here there are bigger problems with this one. You are probably going to get some kind of a dividend cut announcement which the market has already discounted. Expect some volatility.

RISKY

A yield of this level is always a worry, even though management has said it is sustainable. Technically speaking, he looks back to 2009 to see support around current levels. He worries about trying to bottom feed here only to have the distribution cut. A speculative buy here. Yield 9%

TOP PICK

Oil stocks have been slaughtered. This is like owning Saudi oil--FRU's cost of production is $5/barrel. So even if oil plunges to $30, it still makes money. These royalty companies are a great investment. Pays a 9% dividend, paying only 60% of free cash flow. A screaming bargain. (Analysts’ price target is $11.55)

Showing 46 to 60 of 243 entries

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

Most Recent Experts

Stockchase Insights

5i Research

Brian Acker, CA

Acker Finley Inc.

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

David Burrows

Barometer Capital Management

Jim Cramer - Mad Money

CNBC

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

Freehold Royalties Ltd (FRU.TO)